Previous studies have yielded mixed results regarding the influence of pay for individual performance on job satisfaction. This study aims to investigate how and when pay for individual performance impacts employee job satisfaction.
In light of self-determination theory, this study examines the moderating effect of self-concern and other-orientation on the association between pay for individual performance and employee job satisfaction through the mediation of intrinsic motivation. This study tests the proposed hypotheses using a two-wave survey study (n = 701) and an online experiment study (n = 440).
The findings reveal that pay for individual performance has an indirect positive (negative) effect on employee job satisfaction through intrinsic motivation among those with high self-concern or low other-orientation (high other-orientation).
These results underscore the substantial role of individual differences in prosocial orientations when explaining how pay systems shape employees’ attitudes.
